The proposed acquisition of Harcourt General by Anglo-Dutch publisher Reed Elsevier was given a surprise referral to the Competition Commission today. Reed announced plans to buy the US medical publishing company for £31 billion in October last year. The takeover would have created the world’s largest scientific and medical publisher.
However, Kim Howells, the competition and consumer affairs minister, believes that “the proposed acquisition raises competition concerns [about] the market power which the merged company would have in the market for scientific, technical and medical (STM) journals, and which could have an adverse effect on competition in that market.”
Responding to the referral, Crispin Davis, chief executive of Reed Elsevier, said ‘We remain convinced that we have a strong case in support of our acquisition of Harcourt. We do not believe that it will have any adverse effect on the public interest, nor any significant implications for the competitive environment. Indeed, we believe there is a compelling logic to our proposals to acquire the Harcourt businesses which will benefit customers.”
The Commission must report the results of its investigation by 28 May. The process could delay Reed Elsevier’s plans by up to three months.
